Help me help a colleague

[Globules]

She's 22. She's on £18k. Her family are also on low salaries.

She's just taken out her first credit card to build a credit score in order to get a car loan. She's been given a £3k limit on the CC. The intention being to make small purchases and pay the bill off in full each month.

She's now decided she's going to spend £1600 of that £3k on 2 Taylor Swift tickets that her younger sister "needs".

She does not have any savings at all.

I've tried graphs, helping her understand interest and trying to get her to visualise the car as a need and Taylor as a want. I've told her that she'll likely be paying off over years, but nothing is getting through.

Any advice?

nothing you can do if she is choosing to do this - hopefully wont be able to get hold of tickets

The best advice in all honesty would be for her to cut that card up before a penny is spent on it

You know far too much about the finances of a colleague. Don’t get involved. Your kind concern will end with you feeling stressed and wanting to bail her out. Distance yourself.

I think you just have to let her learn from her mistake.

You’ve tried explaining, and for whatever reason she doesn’t want to listen. If you keep trying she’s likely to see you as judgy / interfering/ not correct. And to be fair - it really isn’t any of your business.

Back off for now. If in time she realises you were right she might ask your advice next time. Keep pushing and she’ll keep you at arms length.

She's sharing it all loudly in the staff room. Several of us yesterday were all saying the same thing, including 2 colleagues her own age.

We can all see the path she's heading down, but determined to get the tickets.

I feel so sad for her. Not to the extent of bailing her out though. Why on earth would you conclude that?!

HAving a first CC and messing up by overspending on it is a rite of passage.

I don't understand how anyone can concluded you know too much. If she works in an office then people's salaries reflect their role/responsibility. Their may well be a grading structure with published salary scales.

Again a youngster getting their first card is quite likely to talk about it to friends colleagues.

i conclude it because you sounded kind and were clearly worried for her and quite involved with the extent of drawing graphs etc. And now saying you feel sad for her. It’s not a massive leap for that concern to be exploited down the line.

Have you tried the approach that, entirely leaving aside the credit card aspect, £1600 for two concert tickets is ludicrous - look at what else you could get with that money!

You could have a week's holiday for that; you could buy an old banger of a car; a top-of-the range I-phone, a decent laptop, a television, a piece of furniture, designer clothing - not all of which are sensible purchases when hard up but they would at least have some lasting value ... why the hell spend that on one evening's entertainment unless you are in a 'money no object' situation which she clearly is not.

It's a concern she is doing this for her sister. Does she live with her sister? Could there be some element of coercion/control going on.

Is she full time? £18K is below minimum wage…

Don’t think you can stop a determined fool. Some people have to make their own mistakes. But you could tell her it’ll do the opposite of building her credit score.

I think you’re over involved in this and maybe you should ask yourself why this is.

Hmm well, I've blown money on wildly extravagant experiences for myself and my family, when I couldn't afford them, and took years to pay it back

no regrets!

Ask her to withdraw £20 from cash point and then ask her to set fire to £10 of it

if she says no ask her why? Ask her to explain what the difference is?

Is she full time? £18K is below minimum wage…

depends how many hours she is working 🤷‍♀️

Which is why I asked if she was full-time…

Probably a TA who are paid term-time only (going on the mention of 'staff room').

Got it in one.

I've been an MSEr since 2004. I've done several money makeovers for friends in the past. The graph I showed her was an MSE one @GoingRoundThatBlockAgain not one I drew. I pointed her towards MSE when she initially started talking about getting a credit card last week and kept repeating IN FULL at her.

@MikeRafone that is an excellent idea. I'm on a trip with her tomorrow, so will broach it then.

And @boombang ... That's a sage point you offer. Thank you.

Maybe try showing her the Financielle app and podcast. It’s a budgeting/money management app/brand, but the founders of that talk a lot about their regrets on using credit cards for impulse spending when they were younger (and they’re only in their 30s now, so it is relevant to the sort of demographic we’re talking about here!).

Encourage her to pay off in full every month, setting up a direct debit to pay it off in full is the safest bet.
We've all been 22 and spent frivolously but if she's only on 18k spending £1600 (More than a month's wage for her!) is ludicrous. I'd suggest she saves some money whilst she's young (perhaps 20%) and spend the rest.

You have given your opinion and tried to signpost resources so now you should keep out of it.
I appreciate you are trying to help but you risk overstepping

She got the card to build her credit score then does this to ruin it 🙄

She’s a colleague not a child. Leave her to make her own decisions and mistakes.